Sectors in Stock Market -

What is Stock Market Sector? A collection of publicly traded companies that operate in the same industry. With the growing popularity of the stock market, there are now various stock market sectors that help investors easily manage their portfolios. Before investing, it’s important to know which sector fulfills your goal. All the major public companies are categorized into 11 sectors, 24 industry groups, 69 industries, and 158 sub-industries, according to GICS (Global Industry Classification Industry). These are the 11 stock market sectors:

Real Estate Sector
Healthcare Sector
Utilities Sector
Material Sectors
Consumer Staples Sector
Consumer Discretionary Sector
Energy Sector
Industrial Sector
Consumer Service Sector
Technology Sector
Financial Sector

Let’s understand the brief knowledge of each sector:

Real Estate Sector

The companies in this sector can earn a profit in 2 ways: either they earn the revenue from the rent or from the increased property value. This sector also includes Real Estate Investment Trusts (REITs), companies that purchase multiple assets that produce income in the future, such as office buildings and hotels.

Healthcare Sector

The healthcare sector plays a crucial role in the economy. Medical diagnostic tools, medicines, hospital management, healthcare equipment and services, pharmaceutical companies, etc. are all considered in the stock market’s healthcare sector.

Utilities Sector

Companies that come under the Utilities Sector provide customers with utility services such as water, electricity, and gas. This is the basic need of everyone so for this reason, the sector creates a safer side in an unstable market environment. These are some of the largest utility companies including Duke, NextEra Energy, and The Southern Company.

Material Sector

The companies are responsible for manufacturing various goods and applications that come under the material sector. Businesses that are involved in such manufacturing include:

Construction materials, chemicals, paper, and glass
Metal and mining
Making papers and forest products

Consumer Staples Sector

This category includes companies that are involved in food, beverages, tobacco, household goods, and personal care products. The need for household products makes this sector crucial in the market. Well-known companies in this sector are Coca-Cola, Walmart, and Procter & Gamble.

Consumer Discretionary Sector

Also known as consumer cyclical, companies involved in this sector are the retail, hotel, luxury goods, e-commerce, leisure, and travel industries. These companies sell higher-priced items and have high earnings. Some of these companies include Amazon, Flipkart, McDonald’s, Starbucks, Taco Bell, etc.

Energy Sector

The sector covers companies that are involved in the oil and natural gas industry. The businesses that deal in the production, refining, and sale of energy resources are also included in the energy sector. Well-known companies in this sector are Chevron and Exxon Mobil.

Industrial Sector

The sector may include the companies that involve in the use of heavy equipment like aerospace, airlines, defence machinery, construction, and electrical equipment. Well-known large industrial companies include Honeywell and Union Pacific.

Consumer Service Sector

Also known as the “communication services sector”, this sector includes telecommunication service providers such as:

Internet companies
Wireless telecom networks
The media and entertainment industries (like TV and Radio)

The largest communication service companies include Facebook and Alphabet.

Technology Sector

All the companies included in this sector are semiconductor companies and internet software. The businesses that consider building equipment and hardware are also included in the technology sector. Some of the largest companies in this sector include Microsoft, Amazon, and Apple.